TMI Blog2017 (9) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... gures cannot be ruled out. The assessee maintained its books of account in the regular business which is audited and has received its receipts through banking channel. In such a scenario, in order to disbelieve the assessee’s P&L Account when there is discrepancy with Form 26AS, then it is the bounden duty of the AO to give opportunity to the assessee to confront the payer and to find out the correct figure, without doing so, the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained and, therefore, we direct deletion of the same. This ground of appeal of assessee is allowed. Disallowance of 20% of the site expenses - Held that:- Before the AO, the assessee produced internal vouchers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm is engaged in Road Survey Consultancy (Planning Designing of new road construction). The assessee company filed its return of income declaring a total income of ₹ 18,78,030/-. The case was subsequently selected for scrutiny through CASS. The reason for selection of scrutiny assessment was high ratio of refund. The AO noted that as per 26AS, the assessee received for service value at ₹ 1,80,00,135/- whereas the assessee in its P L Account under the head service value has shown at ₹ 1,78,05,625/-. The AO noted that the assessee had shown receipt from some parties which are not reflected in Form 26AS and at the same time there were certain receipts in Form 26AS which were correctly reflected in the accounts of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value as reflected in the P L Account of the assessee cannot be the ground to make the addition. In such cases, we should take note that the assessee has no control over the Form 26AS which is generated by the department when the payer credits the tax deducted at source electronically by entering the PAN details of the assessee, where mistake during entering the PAN details or figures cannot be ruled out. The assessee maintained its books of account in the regular business which is audited and has received its receipts through banking channel. In such a scenario, in order to disbelieve the assessee s P L Account when there is discrepancy with Form 26AS, then it is the bounden duty of the AO to give opportunity to the assessee to confront th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an appeal before the Ld. CIT(A), who was pleased to confirm the same. 7. We have heard rival submissions and gone through facts and circumstances of the case. We note that the assessee s work is road survey consultancy (Planning and Designing of new road construction) in the north-eastern region of India. The terrain consists of mountains and jungles where lodging, conveyance, food were not readily available and comes with a high cost. The said areas are high risk zone because of insurgency (underground activities). The assessee in order to complete the task requires the Engineers and experts who are not ready to work in these difficult conditions, so had to be lured by giving lucrative incentives. The business expediency requires the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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